NSCB -3rd Quarter 2008 National Accounts

Third Quarter 2008
Gross National Product &
Gross Domestic Product by Industrial Origin

Services remains a buoyant force of the economy

The Services sector, which has been the linchpin of economic growth in the past, grew by only 3.7 percent from 8.0 percent and contributed 1.9 percentage points to the GDP growth. The leading and main contributor to the growth of Services was Trade followed by Private Services and Ownership of Dwelling & Real Estate.

TCS slackens

With the towering cost of fuel experienced during the period, Transportation, Communication and Storage (TCS) posted a marked reduction in growth with 1.5 percent from 5.8 percent posted in the previous year.

Transport and storage felt the impact of the high cost of fuel as its growth plummeted to negative 4.1 percent from a growth of 5.2 percent. Among the sub sectors of Transport and Storage, Land Transport was hardest hit declining by 7.6 percent from a growth of 5.1 percent. Both Air Transport and Storage Services Incidental to Transport registered a slackened growth of 3.6 percent and 2.3 percent, from 18.5 percent and 9.2 percent, respectively. Water Transport, on the other hand, recovered to a growth of 5.9 percent from negative 7.1 percent last year.

The higher service revenues realized from increased cellular, fixed line and broadband subscribers sustained the growth of Communication by 6.3 percent from 6.4 percent recorded last year.

Wholesale Trade spurs Total Trade Services

Trade Services grew at a slower pace of 4.2 percent from 9.1 percent expansion last year. Wholesale Trade, particularly the sales of petroleum products, bolstered the overall performance of the sector to a 12.2 percent upswing from only 2.5 percent last year.

Growth of Retail Trade, on the other hand, weakened to 1.8 percent from a double-digit growth of 11.2 percent last year.

Finance sustains growth

The Financial Services sector, wary of the international financial crisis, grew by 1.3 percent from 11.4 percent. Non-banks, which include financial services from investment companies, security dealers, brokers and pawnshops, declined further by 6.9 percent from negative 1.7 percent the previous year. Likewise, Insurance performed poorly declining by 19.6 percent from a strong growth of 45.2 percent last year.

The accelerated growth of 8.4 percent by the Banks sub-sector failed to offset the decline in the other sub sectors.

ODRE continues to grow

Ownership of Dwellings and Real Estate (ODRE) grew by 6.6 percent from 6.8 percent last year. Real Estate (RE), the greater contributor to ODRE’s growth this quarter, grew by 16.9 percent from 21.3 percent posted last year. Increased revenues from real estate projects, renting and leasing operations of giant supermalls and shopping centers nationwide boosted the favorable performance of the sub-sector.

On the other hand, Ownership of Dwellings (OD), which accounted for 68.3 percent of ODRE, grew by 2.4 percent from 1.9 percent in 2007, with increased recorded building permits.

Business Services continue to drive Private Services

Private Services decelerated to 5.2 percent from 8.7 percent in 2007. The top three contributors to the growth of the sector were Business, Recreational and Personal Services.

The leading contributor of the sector was still Business Services with an accelerated of growth 16.6 percent from 13.7 percent last year hoisted by the continued expansion of the Business Processing Outsourcing (BPO). Meanwhile, Recreational Services grew by 5.0 percent from 13.7 percent. Likewise, Personal Services grew by 2.9 percent from 4.0 percent; Hotel and Restaurant Services sustained a positive growth of 1.7 percent from 11.4 percent; Other Services, up by 3.7 percent from 2.8; and, Medical and Health Services grew at a measly rate of 0.3 percent from 5.4 percent.

On the other hand, Educational Services declined by 4.7 percent from 4.4 percent.

Government Services sustains growth

Government Services grew by 3.3 percent, slightly lower than the 3.4 percent upshot the previous year.

GROSS VALUE ADDED in SERVICES
3rd Quarter 2007 and 3rd Quarter 2008

At Constant 1985 Prices

INDUSTRY/INDUSTRY GROUP	3rd Qtr 2007	3rd Qtr 2008	Growth Rate (%)
SERVICE SECTOR	163,139	169,254	3.7
a. Transport., Comm., Stor.	26,991	27,399	1.5
b. Trade	58,144	60,581	4.2
c. Finance	19,251	19,504	1.3
d. O. Dwellings & R. Estate	16,335	17,411	6.6
e. Private Services	28,797	30,284	5.2
f. Government Services	13,621	14,075	3.3

At Current Prices

INDUSTRY/INDUSTRY GROUP	3rd Qtr 2007	3rd Qtr 2008	Growth Rate (%)
SERVICE SECTOR	883,070	992,049	12.3
a. Transport., Comm., Stor.	109,666	115,242	5.1
b. Trade	243,371	283,113	16.3
c. Finance	86,328	98,125	13.7
d. O. Dwellings & R. Estate	95,971	107,888	12.4
e. Private Services	234,004	262,022	12.0
f. Government Services	113,731	125,659	10.5

GROSS VALUE ADDED in SERVICES
Annual 2007 and 2006
AT CURRENT AND CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/ INDUSTRY GROUP	AT CURRENT PRICES			AT CONSTANT PRICES
INDUSTRY/ INDUSTRY GROUP	2006	2007	Growth Rate (%)	2006	2007	Growth Rate (%)
SERVICE SECTOR	3,267,004	3,604,542	10.3	621,389	671,883	8.1
a. Transport., Comm., Stor.	446,224	478,389	7.2	111,412	120,698	8.3
b. Trade	877,544	981,101	11.8	215,960	233,774	8.2
c. Finance	311,444	361,972	16.2	71,891	81,310	13.1
d. O. Dwellings & R. Estate	350,676	373,973	6.6	59,734	63,234	5.9
e. Private Services	830,152	936,912	12.9	107,316	116,374	8.4
f. Government Services	450,964	472,196	4.7	55,077	56,493	2.6

Source: National Statistical Coordination Board (NSCB)

Posted 27 November 2008